HSBC (HSBA) Q4 2025 earnings summary

Executive summary

• Achieved strong full-year 2025 performance with $71.0bn revenue (+5% YoY) and $36.6bn profit before tax excluding notable items (+7% YoY), with all four business segments delivering mid-teens or better RoTE and robust revenue and deposit growth.

• Completed the $13.7bn privatization of Hang Seng Bank, unlocking up to $0.9bn in synergies and cost savings by 2028.

• Strategic priorities focused on simplification, customer centricity, and sustainable growth, supported by investments in technology and talent.

• Announced new growth and return targets for 2026–2028: 5% revenue growth by 2028 and RoTE of 17% or better annually.

• Reported profit before tax was $29.9bn, down due to $4.9bn net adverse notable items, but underlying profit and ROTE excluding these items improved.

Financial highlights

• Group revenues grew 5% year-on-year to $71bn; Q4 revenues up 6% to $17.7bn.

• Profit before tax rose 7% to $36.6bn excluding notable items; reported profit before tax was $29.9bn.

• Return on tangible equity reached 17.2% for the full year (excluding notable items); reported ROTE was 13.3%.

• Ordinary dividend per share increased 14% to $0.75, totaling $12.9bn; $6bn in share buybacks completed.

• CET1 capital ratio at 14.9%, up 40bps in Q4.

Outlook and guidance

• Targeting revenue growth every year, rising to 5% in 2028, and RoTE of 17%+ from 2026–2028, excluding notable items.

• Dividend payout ratio set at 50% annually, excluding material notable items.

• 2026 Banking NII expected at least $45bn, with cost growth constrained to 1%.

• ECL charge guidance for 2026 at around 40bps, reflecting economic outlook and sector pressures.

• CET1 capital ratio to be managed within 14–14.5% medium-term range, with temporary dip due to Hang Seng Bank privatization.